What is the name of your state (only U.S. law)? Maine
My in-laws own a 2 family rental property. They dont actually own it, but their name is on the mortgage. They do not have the financial ability or willingness to properly manage the property. My wife, brother-in-law, and myself has assumed all responsibility for the property. We handle all maintenance, management, and expenses for the property. In exchange, we are able to make all decisions for the property and are entitled to all profits from its sale, or any positive monthly cash-flow.
Is there a way that we could draw up a legally binding contract with my in-laws that would protect our interests in this arrangement? I understand that we could purchase the property from them outright, but we would need to come up with a big fat down payment and get slapped with a much higher interest rate which would compromise the cash flow. We would be happy if we could simply leave things the way they are and draw up a contract with my in-laws that would hold up in court if needed.
Any suggestions??? Or should we just bite the bullet and purchase the property from them??
My in-laws own a 2 family rental property. They dont actually own it, but their name is on the mortgage. They do not have the financial ability or willingness to properly manage the property. My wife, brother-in-law, and myself has assumed all responsibility for the property. We handle all maintenance, management, and expenses for the property. In exchange, we are able to make all decisions for the property and are entitled to all profits from its sale, or any positive monthly cash-flow.
Is there a way that we could draw up a legally binding contract with my in-laws that would protect our interests in this arrangement? I understand that we could purchase the property from them outright, but we would need to come up with a big fat down payment and get slapped with a much higher interest rate which would compromise the cash flow. We would be happy if we could simply leave things the way they are and draw up a contract with my in-laws that would hold up in court if needed.
Any suggestions??? Or should we just bite the bullet and purchase the property from them??